Yahoo looking to buy Tumblr for as much as $1 billion: reports

Would the hip blogging service help Marissa Mayer revive the company?

Did you Yahoo! that?

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Yahoo could be in talks with the blogging site Tumblr to buy it for as much as $1 billion, at least according to speculation on tech websites.

All Things D quotes “sources close to the situation” who say Yahoo is eyeing Tumblr in an effort to attract the coveted younger 18-24 demographic and to add a cool-factor to its aging services.

Recently, Yahoo tried, and failed, to purchase the French video-sharing site Dailymotion under the direction of Yahoo CEO Marissa Mayer. The Dailymotion deal was reportedly blocked by the French government, says the The Wall Street Journal, which didn’t want a U.S.-based company to own a 75 per cent share in the successful French video-sharing service.

Yahoo is also one of several companies looking at a deal with video-streaming service Hulu, according to a report by Bloomberg News.

Since Mayer took over the company, Yahoo has also reportedly been in talks with: Foursquare (for $800 million), Path ($2 billion), Pinterest, Zynga, Gdgt, Wavii and Media Ocean, notes Wired, which quotes a source close to Yahoo that says: “Literally they talk to everyone.”

It also notes that a Tumblr buy would be a risky one for the company. If the reported $1 billion asking price is correct, that would represent 1/4 of Yahoo’s cash on hand, reports Wired.

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